– Volkswagen’s board began a crisis meeting on Wednesday that could decide the future of board chairman Martin Winterkorn, as Europe’s biggest carmaker struggles to respond to a deepening emissions testing scandal.
VW shares rebounded as members of the presidium of the supervisory board gathered in the group’s headquarters in the northern German city of Wolfsburg to consider how to begin hauling the company out of the crisis.
The carmaker’s weekend admission that it had installed sophisticated software in its diesel models aimed at beating US exhaust tests has sent shockwaves through the German auto industry.
VW subsequently issued a profits warning and revealed that emissions tests might have been manipulated for about 11 million cars worldwide.
Winterkorn has publicly apologized for the scandal and vowed to clear up the affair as part of his efforts to hold onto his job.
Wednesday’s presidium meeting comes ahead of a meeting on Friday of the full supervisory board. Before the scandal broke, the board, consisting of executives and shareholders’ representatives, had been expected to extend Winterkorn’s contract to 2018.
The revelation sent VW shares into a tailspin this week wiping about 26 billion euros (29 billion dollars) off the value of the company in just two days, with the group saying it had set aside 6.5 billion euros in the third quarter to address costs.
However, after crashing during the first two days of the week, VW stock rose 2.7 per cent to 108.85 euros in early trading in Frankfurt on Tuesday.